What seems to be the future of Micro Finance in India?

With Micro Finance lending a helping hand to people from the rural towns and villages, it takes for a lot to get the best possible loan distribution done to the residents that happen to live within a 10 km radius of that particular branch. However, there is a certain amount of discretion that is to be given to the people living within that certain radius, as most of them may not be able to bring about the desired changes to their life with that particular amount. Most of them may not be able to go for the perfect repayment capacity. With all of that being said, accompanied by the name of Suryoday Micro Finance is leading the market when it comes to such initiatives. However, with the presence of big banks and very attractive interest rate, is there a certain future for Micro Finance in this country?

If you go by the demographics, you will find that there are at least 50% of the people of India living in villages. Such people do not have any sort of access to big banks, but they would have to go buy their daily living standards. Hence, they need to purchase equipment, look into their house, and also undertake savings with the limited finances that they have. It cannot be achieved by taking into account the huge transaction fees as well as a lot of documentation that is to be done with the premier banks. This is where Micro Finance comes into the question. The integral service that is provided by Suryoday Micro Finance is definitely something that people will be able to live by. This way, the Micro Finance industry is definitely going to enable the remaining 50% of the population to actually go by their banking needs and make money, as well as use it for their own purposes.

How does micro-finance help you?

There are various definitions of micro-finance that you can deal with. There are various markets that you could possibly find affected by this particular term. There are many people engaged or actually contemplating taking the help of such services. Here is how micro-finance can actually end up affecting you.

If you are an investor, the micro-finance is actually providing extremely good investment returns. There are major rating agencies, that has been able to rate the financial transactions done by such micro-finance agencies. It goes to show that micro-finance is actually looking into providing excellent investment opportunities for the people willing to invest a substantial amount of money. If you look into most of the local and regional banks, you’ll find that they have mostly gone for the integration of micro-finance investments into their portfolio. This is definitely a good way in which they will be able to tackle and get back the invested amount.

If you are a financial professional, then micro-finance can actually help you to gain the desired financial knowledge which is highly specialized. It requires a unique combination of social science, local dialects and customs, as well as the combination of skill. You would need to meet new criteria of people that have unique demands. Such kind of a career opportunity can definitely rejuvenate the learning experience for any professional. Moreover, the carrier roles for the micro-finance are actually being blurred due to the huge amount of collaboration done by most of the worldwide banks with regional institutions.

As the individual, we’re looking into living in times in which money can eradicate poverty. You need to make sure that you go for the use of micro-finance to make sure that you will be able to pull yourself up from the poverty line. Poverty eradication is actually a means that can actually be taken care of by micro-finance.

Effective and efficient business model developed by Suryoday Micro Finance

The micro-financing industry is something of a crux in the finance market. For most people, that is unable to secure loans they could get that from the micro-finance industry. However, one needs to get themselves to a wonderful micro-finance company that does not have any sort of scam associated with a name. Herein, enters Suryoday Micro Finance, a wonderful company that has been in business for a long time. They have a certain business model, and they always operate to make sure that they can distribute loans to the customers that would reside within 10 km radius of their operating branch. They need an effective carpet coverage area within the first 5 km radius, as well as an extended coverage that would span to the next 5 km radius.

They would like to build a presence in such a town or city that would be able to meet the specific criteria that they require. Some of them have been mentioned below.
1.    Very pleasant and safe operating environment
2.    A wonderful law and order situation
3.    Social issues to be taken up by the active NGOs in the local environment.
4.    Tremendous opportunity for talent to be attracted within that particular radius.
5.    Excellent healthcare facilities in the nearby area.
6.    Government agencies that is supportive.
7.    A very effective makes of Urban/ semirural/ rural locations in the area.
8.    A cost of living that is reasonable.

Suryoday Micro Finance has already begun its operations in Pune, and continues to be looking to expand its operations to some other selective markets. Building footprints and creating new branches to serve people has always been the mainstay of Suryoday Micro Finance, and they would aim at doing so. They currently have operations in states of Maharashtra, Gujarat, Rajasthan, Karnataka, Madhya Pradesh, Orissa and Tamil Nadu.